Sabbas Joseph, who directed the IIFA weekend in the Chinese enclave of Macau last week, said that the event could mark the beginning of closer relations between the two film industries.
Joseph told AFP: "I think the Hollywood-Bollywood coming together is logical. China and India coming together is the more exciting part, because we are probably the two most exciting economies in the world.
"We have one third of the world's population. If together we become a combined [audience] and a combined production force, I think it will open up new markets and vistas."
Chandni Chowk To China, which starred Akshay Kumar, flopped at the box office earlier this year, despite being the first Indian film to be shot in China.